NCLT Orders Disciplinary Measures Against Byju's RP

The National Company Law Tribunal (NCLT) has mandated disciplinary action against the resolution professional (RP) overseeing the insolvency case of the troubled edtech startup Byju's. The tribunal cited misconduct and decisions that adversely affected the proceedings and stakeholders involved.

Reinstatement of Glas Trust and Aditya Birla Finance

In a significant ruling, the NCLT has ordered the reinstatement of US-based Glas Trust and Aditya Birla Finance to the Committee of Creditors (CoC). These entities were previously removed from the CoC by the RP last year, a move that has now been overturned by the tribunal.

IRP's Duty and Misconduct

"The IRP has a duty to assist the tribunal with integrity in an honest and fair manner. However, the conduct of the IRP in this case was aimed at misleading the tribunal. The actions and decisions taken by the IRP are prejudicial to the interests of the CIRP process outlined by the IBC, 2016," stated the tribunal in its order.

Investigation by Insolvency and Bankruptcy Board of India

With the IRP's conduct deemed "not fit and proper as expected from an officer of the tribunal," Judges K Biswal and Ravichandran Ramasamy have suggested that the Insolvency and Bankruptcy Board of India investigate the matter further.